Bitcoin

<p>Since the beginning of June, Bitcoin seems to be stumbling. Despite fierce resistance, the flagship crypto has still not managed to surpass the $60,000 mark. This stagnation worries both seasoned investors and newcomers. Today, let’s dive into this worrying situation and analyze the key elements of Glassnode’s latest report to understand the ins and outs of this crisis.</p>
<h2 id="h-bitcoin-a-measured-decline">Bitcoin: A Measured Decline</h2>
<p>Bitcoin <a href="https://www.cointribune.com/en/bitcoin-falls-below-60000-analysis-from-july-9-2024/" target="_blank" rel="noopener noreferrer nofollow">has recently plummeted</a>, recording <strong>a drop of 26% from its all-time high</strong> of over $74,000. This decline, while significant, remains less deep than in previous cycles, as highlighted by the <a href="https://insights.glassnode.com/the-week-onchain-week-28-2024/" target="_blank" rel="noopener noreferrer nofollow">Glassnode report</a>:</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1">
 </div>
</div>
<p>“<em>While this is significant, this downward trend has been notably less deep than previous cycles, highlighting a relatively robust underlying market structure</em>.”</p> 
<div class="tradingview-widget-container tradingview--mini-chart">
 <div class="tradingview-widget-container__widget"></div>
 <div class="tradingview--mini-chart--dark">
  <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-mini-symbol-overview.js" async>{"symbol":"BINANCE:BTCUSD","width":350,"height":220,"isTransparent":false,"autosize":false,"dateRange":"12M","trendLineColor":"rgba(253,64,19,1)","underLineColor":"rgba(253,64,19,0.6)","underLineBottomColor":"rgba(253,64,19,0)","locale":"en","largeChartUrl":false,"colorTheme":"dark"}</script>
 </div>
 <div class="tradingview--mini-chart--light">
  <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-mini-symbol-overview.js" async>{"symbol":"BINANCE:BTCUSD","width":350,"height":220,"isTransparent":false,"autosize":false,"dateRange":"12M","trendLineColor":"rgba(253,64,19,1)","underLineColor":"rgba(253,64,19,0.6)","underLineBottomColor":"rgba(253,64,19,0)","locale":"en","largeChartUrl":false,"colorTheme":"light"}</script>
 </div>
 <div class="tradingview-widget-copyright"><a href="https://fr.tradingview.com/symbols/BTCUSD/?exchange=BINANCE" rel="noopener noreferrer nofollow" target="_blank"><span class="text-primary-color">BTCUSD chart</span></a> by TradingView
 </div>
</div> 
<p>In other words, <strong>the strength of the Bitcoin market remains undeniable</strong>, despite the current turbulence.</p>
<p>Short-term holders are particularly affected, with <strong>more than 2.8 million BTC currently below their acquisition price</strong>. This is a hard hit for these investors who see their profitability evaporate.</p>
<div class="wp-block-image">
 <figure class="aligncenter size-large"><img decoding="async" src="https://insights.glassnode.com/content/images/size/w1600/2024/07/woc-28-04-1-.png" alt="total-bitcoins-offer-short-term-investors">
  <figcaption class="wp-element-caption">
   Total bitcoin supply held by short-term investors – Source: Glassnode
  </figcaption>
 </figure>
</div>
<p>However, Glassnode tempers: <strong>losses remain moderate</strong> relative to the total market size. The market structure seems to be evolving, with <strong>volatility compressing</strong>, a sign that Bitcoin is stabilizing as a mature asset.</p>
<div class="affiliate-button"><a class="affiliate-button__link" href="https://join.swissborg.com/r/frederEZU5" target="_blank" rel="noopener noreferrer nofollow">Buy your crypto with Swissborg</a> <a class="affiliate-button__disclaimer" href="https://www.cointribune.com/en/sponsored-content/" target="_blank" rel="noopener noreferrer nofollow">This link uses an affiliate program.</a>
</div>
<h2 id="h-crypto-between-influx-of-new-investors-and-saturation">Crypto: Between Influx of New Investors and Saturation</h2>
<p>The crypto universe is not left behind, with <strong>a <a href="https://www.cointribune.com/en/bitcoin-record-inflow-into-etfs-propels-btc/" target="_blank" rel="noopener noreferrer nofollow">massive influx of new investors</a> starting January 2024</strong>, notably thanks to the launch of spot ETFs. However, this initial enthusiasm quickly waned, creating <strong>an overabundance</strong>.</p>
<p>Glassnode’s report notes:</p>
<p>“<em>Demand has peaked, leading to an overabundance, as fewer long-term holders are taking profits and fewer new buyers are accumulating BTC.</em>”</p>
<p>This situation has led to a market saturation, where more than 2.8 million BTC are below their cost base, marking the second occurrence in a year where <strong>more than 2 million BTC are ‘underwater’</strong>.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="2">
 </div>
</div>
<div class="wp-block-image">
 <figure class="aligncenter size-large"><img decoding="async" src="https://insights.glassnode.com/content/images/size/w1600/2024/07/woc-28-05-1-.png" alt="short-term-bitcoin-investors">
  <figcaption class="wp-element-caption">
   Losses of short-term bitcoin investors – Source: Glassnode
  </figcaption>
 </figure>
</div>
<p>The <strong>financial pressure on short-term holders</strong> is palpable, but remains moderate in proportion to the total wealth invested.</p>
<p>Glassnode concludes: “<em>The losses recorded by this cohort remain fairly typical compared to previous bull market corrections</em>.”</p>
<p>In conclusion, although Bitcoin and the crypto world are going through a tumultuous period, the strength of the market remains notable. The <a href="https://www.cointribune.com/en/bitcoin-the-flagship-cryptos-volatility-prompts-long-term-holders-to-take-profits/" target="_blank" rel="noopener noreferrer nofollow">long-term prospects</a> remain cautiously optimistic, with the hope of a demand recovery to stabilize prices and bring the flagship crypto back to life.</p>

Bitcoin Plunges Below $60,000 but Remains in Good Shape

Table of Contents

Cointribune EN

Autres articles publiés le 11 juil. 2024

Germany Sells Off Most of Its Bitcoin Holdings

Free Crypto Tokens: Best Airdrops Today

Vitalik Buterin and Joseph Lubin Reflect on Ethereum’s 10-Year Anniversary at EthCC

Zero Hash Makes SUI Available to its Customers

Binance Expands Offerings with New Trading Pairs and Bot Services

Is Bitcoin (BTC) Going To $40K, What Would That Do To The Price Of ETH? Many Investors Are Lookin...

Join our free newsletter for daily crypto updates!